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Small Business Merch Revenue Math: What You Spend and What You Keep

May 19, 2026 7 min read By Eli Goldberg
Quick Answer
Table of Contents
  1. The three numbers that decide merch profit
  2. How much should a small business charge for a tee or hoodie?
  3. Revenue math at three monthly volumes
  4. When does upgrading from Free to VIP pay for itself?
  5. Stacking the affiliate program on top of merch profit
  6. Frequently Asked Questions

Merch profit for a small business comes down to three numbers: the base price the business pays, the retail price it charges, and how many pieces sell in a month. None of those numbers require guesswork. The base prices are fixed and published, the retail price is fully up to the business owner, and the sales volume scales with how visible the shop is to staff and customers. Here is the math laid out with real catalog numbers.

The three numbers that decide merch profit

Every merch dollar for a small business traces back to:

Margin per piece equals retail minus base price. Monthly profit equals margin per piece times volume.

How much should a small business charge for a tee or hoodie?

ProductVIP base priceTypical retailMargin per item
Cotton tee$19.88$28 to $32$8 to $12
Polo shirt$34.88$48 to $55$13 to $20
Comfort Soft Hoodie$36.88$52 to $60$15 to $23
Embroidered hat$29.86$38 to $45$8 to $15

Default recommended profit is $10 per item, but most businesses charge more on hoodies and joggers where the perceived value is higher.

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Revenue math at three monthly volumes

Monthly volumeAverage marginMonthly profitAnnual profit
10 items$12$120$1,440
50 items$12$600$7,200
150 items$13$1,950$23,400

These figures assume no ad spend, just staff wearing the shop and customers seeing it on-site. A business running seasonal drops or event-based sales spikes will beat these baselines.

When does upgrading from Free to VIP pay for itself?

The Self-Service VIP plan costs $59 a month but saves $4 to $11 per item versus the Free plan's base price. At an average $6 per-item savings, a business needs to sell about 10 items a month just to cover the plan fee from the base-price savings alone, before counting the actual retail margin on top. Businesses moving more than 15 to 20 items a month typically come out ahead on VIP even before factoring in the larger catalog. See the full cost breakdown for the plan comparison.

Stacking the affiliate program on top of merch profit

Every signup, free or paid, also gets an affiliate link. Referring another vendor pays 10% of that vendor's subscription forever, plus $1 for every unit that vendor sells. Payouts run bi-weekly. A business that refers two or three other local businesses into the platform adds a second, passive revenue line on top of its own merch profit.

Run Your Own Numbers

Set your own retail prices and keep the margin on every sale. No inventory, no minimum, free to start.

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Frequently Asked Questions

What is the default profit margin on Bear Grips Pro Shops?

The platform recommends a default profit of $10 per item, though the business sets its own retail price and can charge more or less.

Does Bear Grips take a cut of the retail price beyond the base price?

No. The business keeps everything charged above the fixed base price for that product and plan tier.

How often do payouts happen?

Affiliate commissions and unit bonuses pay out on a bi-weekly cycle.

Can I change my retail prices after the shop is live?

Yes, at any time. There are no restrictions on retail pricing changes.

Eli Goldberg
Eli GoldbergSmall Business Branding Writer

Eli writes about small business and startup branding. He spent eight years in B2B marketing before going independent and covers how small companies use apparel for swag, conferences, hiring events, and team building.

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